The United States and Japan will step up their defence cooperation to deal with the threat from nuclear-armed North Korea as tensions in East Asia remain high, officials from the two allies said on Thursday.

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There is speculation Mr Abbott may reshuffle his frontbench towards the end of 2014, with the possibility of stood-aside assistant treasurer Arthur Sinodinos not returning to the ministry.

Senator Sinodinos, the former NSW Liberal Party treasurer, appeared before the Independent Commission Against Corruption in April to discuss his involvement in Australian Water Holdings (AWH) where he was a director and chairman.

ICAC was looking into allegations that between 2004 and 2012, AWH falsely billed Sydney Water for expenses on an infrastructure project and used the money for executive salaries and political donations.

Opposition Leader Bill Shorten laughed at the suggestion the cabinet received straight-As.

"It sounds like anyone could front up to the Abbott class and get a good mark," Mr Shorten told reporters in Sydney on Wednesday.

"I think the government's been a fail when it comes to so many of its election promises."

Its first year had been a "great disappointment" for pensioners, the sick, the vulnerable and university students, Mr Shorten said.

Many people were uncertain about Mr Abbott at the last election but prepared to give him a go, Mr Shorten said.

"I think now after 12 months most Australians have had their views about Tony Abbott confirmed, that they don't trust him."